For many small businesses, yes. Under the new regulations, if a small business (entity) was created or registered to do business in the United States by filing a document with a secretary of state or similar office, it is generally required to file a BOI report with the Federal Crimes Enforcement Network (FinCEN). If the entity existed before 2024, the BOI report filing is due by January 1, 2025. New entities created after January 1, 2024, must file within 90 days of their creation or registration. Penalties can occur if there is a failure to file.

Filing is relatively painless and can be done online. It takes small businesses an average of 20 minutes to file. Visit boiefiling.fincen.gov to file or to gain more information. FinCEN is a bureau within the US Department of Treasury, so the help tab has extensive information and guidance.

Basic company information, including the EIN, will be requested while filing. The following information is needed to report individuals who control at least 25% of the ownership interest in the company, as well as individuals who exercise substantial control (decision-makers) over a reporting entity.

• Full Legal Name
• Date of Birth
• Address
• Unique Identifying Number from an acceptable identification document (e.g., non-expired U.S. driver’s license, U.S. passport, or foreign passport if no other ID is available)
• Image of the Identification Document

More recently established entities will also need to include the Company Applicant information.

Not all entities are required to file. Specific exemptions are outlined on the Financial Crimes Enforcement Network website. After viewing the website, we recommend contacting your CPA or attorney if you still need help ascertaining your company’s obligation to report.

What are the fines for missing deadlines? A person who willfully violates requirements may be subject to civil penalties of up to $500 (adjusted annually for inflation) for each day the violation continues. They could also be subject to criminal penalties of up to two years imprisonment and a fine of up to $10,000, depending on the situation.

If the submitted information changes or identification documents expire, the submission must be updated. The updates are required within 30 calendar days after a change occurs.

Many small business owners have multiple entities. Don’t forget the smaller entities. Each must be filed separately.